Ion Exchange (500214) Q1 25/26 earnings summary

Executive summary

• Consolidated operating income for Q1 FY26 was INR 5,832 million, up 2.7% year-on-year.

• Net profit rose 8% year-on-year to INR 484 million; PAT margin at 8.3%.

• EBITDA declined 2.2% year-on-year to INR 627 million; EBITDA margin at 10.75%.

• SAP migration caused transition challenges, impacting business volumes, especially in April; operations have largely stabilized post-transition.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on July 30, 2025.

Financial highlights

• Q1 FY26 consolidated revenue from operations was INR 5,832 million, up from INR 5,675.7 million year-over-year.

• Q1 FY26 consolidated net profit was INR 484 million, up from INR 447.8 million year-over-year.

• Q1 FY26 consolidated EBITDA was INR 627 million, down from INR 641 million year-over-year.

• Diluted EPS for Q1 FY26 at INR 4.108, up from INR 3.792 year-over-year.

• Sequentially, operating income declined 30.1% and net profit declined 20.1% from Q4 FY25.

Outlook and guidance

• Greenfield resin manufacturing plant at Roha on track for commissioning in Q2 FY26.

• No major change in outlook compared to previous quarter; full-year guidance to be updated after Q2.

• Legacy engineering projects expected to close by year-end; UP project to continue into next year.

• Chemical business expected to recover post-SAP transition; Roha plant commissioning in Q2 to drive growth.

• Management does not envisage any liability regarding the ongoing SEBI matter with the subsidiary IEEFL.